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Please compute how much Callaway managed up or down their 1999 earnings compared to 1998 by analyzing account receivable and Inventory accounts.


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Response upload instructions: You may either type out your response in a Microsoft Word file, or write out your response on paper and take a photo/scan the response. You should attach your file as a .docf.docx, pdf, orlmage file. Please be sure to label each part of
your answer as 6a, 6b, etc. Please refer to a partial footnote from 1999 Callaway Golf Co. After long economic boom US firms were facing a major economic
slowdown from 1999 and on. Some of the investors questioned Callaway's accounting treatment of account receivables and inventory obsolescence. Please compute how much Callaway managed up or down their 1999 earnings compared to 1998 by
analyzing account receivable and Inventory accounts. a. Account Receivables:
b. Inventory Obsolescence: c. Summary conclusions: NOTE 3
SELECTED EIHRNCIAL STATEMENT mronmnrmn _"_#r___—..__....._..--———--—--*—"*"“— n’
[in thousands] December 31,
1999 1998 M Cash and cash equlvaients: E
Cash. Interest bearing E $110.15? I $ 41.689
Cash, non-interest bearing l 2,“:5 E 3.929 E $112,502 E 5 45,613 _._—,..—._..——-——I-——IE-—"”—§—“-—*‘" Accounts renewable, net: E E
Tradeatcounts receivable E S 59.543 ;' $ Eli-:05
i Alla-manta for doubtful accounts E [5.291] _ {9.939}
$ 54.252 E 5 73355
M
inventories. net: E E
Raw materials E 5 45.368 E $102,352 Worlc-in-pmcess E 13303 E 1,820 ’ Finished goods 5 65.661 81.863
, 112.932 E 186,er Reserve for obsolescence E [1:139:40 (3:53-5:31 E 5 97,933 E 5149.192

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